KfW IPEX-Bank is financing the expansion of a combined cycle power plant in South Korea

Frankfurt am Main (ots) -

- Hermes-covered loan of EUR 194 million provided in equal shares
by KfW IPEX-Bank and NordLB
- German exports: three highly efficient power islands from
Siemens AG
- Investment totalling approx. EUR 1 billion

KfW IPEX-Bank together with NordLB is providing South Korean
company Posco Energy with a loan of EUR 194 million to expand a
combined cycle power plant. Three new power islands will generate
1,260 MW of electrical energy in total at the existing Incheon site,
thus replacing two islands with a collective capacity of 900 MW that
have already been decommissioned. "Our financing enables us to
support German advanced technology exports and therefore strengthen
Germany as a production location. We are also helping to reduce the
impact on the environment at the same time," explained Markus Scheer,
member of the Management Board of KfW IPEX-Bank, when signing the
contract in January 2014. The tried-and-tested gas and steam turbines
and other system parts to be supplied by Siemens AG are
state-of-the-art and therefore considerably boost the efficiency of
the system as a whole. The new power islands which are already in the
installation phase, are more than just energy-efficient; they are
extremely flexible to operate too. Indeed, they need only 30 minutes
to operate at full load.

Posco Energy's total investment costs amount to roughly EUR 1
billion, around EUR 800 million of which is being covered by the
company's own funds and the issuance of local bonds. The joint KfW
IPEX-Bank and NordLB loan of EUR 194 million is covered by an export
credit guarantee of the Federal Republic of Germany and has a tenor
of 14 years.

About KfW IPEX-Bank GmbH

Within the KfW Group, KfW IPEX-Bank is responsible for
international project and export finance. Its function of providing
financing to boost the German and European economy is derived from
the legal mandate assigned to KfW. It offers medium- and long-term
financing to support key export industries, to develop economic and
social infrastructure and to fund environmental and climate
protection projects. KfW IPEX-Bank operates as a legally independent
group subsidiary and plays a major role in fulfilling KfW's
promotional mission. It is represented in the most important economic
and financial centres across the globe.

Contact:
KfW IPEX-Bank GmbH, Palmengartenstraße 5-9, 60325 Frankfurt
Thomas Krick, Phone: +49 (0) 69 7431 8454, E-Mail:
thomas.krick@kfw.de
Pressestelle: E-Mail: axel.breitbach@kfw.de
Tel. 069 7431-2961, Fax: 069 7431-9409, E-Mail:
info@kfw-ipex-bank.de,
Internet: www.kfw-ipex-bank.de